Gold went up over $7 yesterday to close above $1817 an ounce. It is now inches away from its all-time high set in 2012. Mining stocks are rising faster, but they have been outperforming the S&P 500 now since October of 2018. To beat the market you want to be in the sectors and stocks beating the market and this is why the gold and silver bugs now rule.

The price of silver closed yesterday above $20 an ounce for the first time in four years. Take a look at this long-term chart.

You can’t really tell how important yesterday’s silver move was by just looking at the daily price quote. People who only trade on apps don’t see what is important. You have to look at the long-term chart to see that this close above $20 marks a close above a four-year resistance level and the upper 200-day Bollinger Band.

What it represents is a breakout through a stage one base and into a brand new bull market.

The most profitable time to invest in something is when it comes out of a stage one base and begins a new stage two bull market. If the concept of stage analysis is new to you then just grab my book Strategic Stock Trading for a primer. What is really exciting is that the silver mining stocks have already broken out weeks ago and are now simply exploding.

Take a look for instance at this chart for Pan American Silver (NASDAQ: PAAS).

Obviously Pan American Silver went through its high of four years ago long before silver went through $20.00 an ounce. This is the story too for all of the other major silver mining stocks. This is important because in a metals bull market the mining stocks historically have rallied harder than the metals at the start of the move and broken out first. And so this move in the mining stocks is a powerful confirmation to Monday’s silver move.

I actually own PAAS and it has gone up so fast in recent weeks that it really doesn’t have a good entry point. Luckily I focus on good entry points in the future stock picks to help people get in without so much risk.